June 23 (Reuters) - Copper prices extended declines on Thursday to a 16-month low on COVID-19 concerns in China and mounting worries that aggressive U.S. interest rate hikes would tip the global economy into recession, slashing metals demand. FUNDAMENTALS * Three-month copper on the London Metal Exchange
fell 2% to $8,600 a tonne by 0228 GMT, after dropping to its lowest since Feb. 19, 2021 at $8,564.50. * The most-traded July copper contract in Shanghai slipped 3.2% to 65,840 yuan ($9,808.13) a tonne, its lowest since late-August. * The Federal Reserve is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, U.S. central bank chief Jerome Powell said on Wednesday. [nL1N2Y917N] * A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September. [nW1N2X9040] * Mainland China reported 135 new coronavirus cases for June 22, compared with 126 new cases a day earlier, the National Health Commission said. [nK7N2PR028] * Japan's factory activity growth slowed in June as China's strict COVID-19 curbs took a toll on manufacturing demand. [nZRN004KDB] * A community in Peru's Andes mountains on Wednesday suspended their blockade of a highway used by MMG Ltd's Las Bambas copper mine, agreeing to negotiate with the government and the company over the road's use, one of the community's leaders said. [nL1N2Y935T] * Workers at Chilean state-owned mining giant Codelco, the world's largest copper producer, launched a major strike on Wednesday to protest the closure of a smelter over environmental issues, though the government downplayed the impact on operations. [nL1N2Y91GW] * The global nickel market deficit narrowed to 200 tonnes in April, compared with a shortfall a month earlier of 8,900 tonnes, data from the International Nickel Study Group showed. [nL1N2Y91IU] MARKETS NEWS * Asian shares wobbled while commodity prices fell on Thursday as mounting worries about the risks of a global recession kept broad investor sentiment fragile. [MKTS/GLOB] DATA/EVENTS (GMT) 0715 France S&P Global Mfg, Serv, Comp Flash PMIs June 0730 Germany S&P Global Mfg, Serv, Comp Flash PMIs June 0800 EU S&P Global Mfg, Serv, Comp Flash PMIs June 0830 UK Flash Comp, Mfg, Serv PMIs June 1230 US Initial Jobless Clm Weekly 1345 US S&P Global Mfg, Serv, Comp Flash PMIs June PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ($1 = 6.7128 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; editing by Uttaresh.V) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.firstname.lastname@example.org)) (( For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures <0#HG:> All metals news [MTL] All commodities news [C] Foreign exchange rates SPEED GUIDES )) Keywords: GLOBAL METALS/
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